The story of Mars in short: flop planet, can't hydrosphere.
There is extremely strong evidence that in the very early years Mars was capable of holding on to a great deal of water: Enough to cover the Southern Hemisphere. The streambed seen here is from that time.
That downer is that this was over 3 billion years ago. Through a variety of processes and for a number of reasons most of Mars' water was lost to space or trapped underground.
The billion-dollar question that would be epic to answer: Did Mars develop Or acquire life during the time it had liquid water on the surface and if so is there any trace of it left, alive or dead?